Case Digest (G.R. No. L-19978)
Facts:
Cecilio Rafael, doing business under the style El Barato Alce Company v. The Embroidery and Apparel Control and Inspection Board, et al., G.R. No. L-19978, September 29, 1967, the Supreme Court En Banc, Makalintal, J., writing for the Court.Petitioner Cecilio Rafael operated a manufacturing bonded warehouse (Manufacturing Bonded Warehouse No. 88) after authorization by the Collector of Customs (letter dated January 9, 1961), importing duty-exempt raw materials and manufacturing them into finished products for export under the Tariff and Customs Code regime governing bonded manufacturing warehouses (see Secs. 1903, 2004, Tariff and Customs Code).
On June 17, 1961 Congress enacted Republic Act No. 3137 creating an Embroidery and Apparel Control and Inspection Board (the Board) to control, license and inspect conditionally tax-free raw material importations by local embroidery and apparel manufacturers and to supervise liquidation upon re-exportation. Section 2 prescribed the Board’s composition: a Customs representative (Chairman), representatives from the Central Bank, Department of Commerce and Industry, the National Economic Council, and “a representative from the private sector coming from the Association of Embroidery and Apparel Exporters of the Philippines.” The Board was thereafter constituted with the named ex‑officio representatives and, on recommendation of the Association, Quintin Santiago named as the private-sector representative.
Petitioner’s organization belonged to a different private association (the Philippine Chamber of Embroidery and Apparel Producers), and objected to Santiago’s selection. The Board adopted Resolution No. 2 (Sept. 15, 1961) holding that the P.A.E.A.E. was the association referred to by the statute. In August 1961 the Board requested petitioner to submit an application (Form No. 1) and to remit P200 as an advance against future assessments (per Sec. 4 XVI of RA 3137); petitioner refused.
Petitioner filed an action for prohibition with preliminary injunction (Civil Case No. 49087) seeking to enjoin respondents (the Board, the P.A.E.A.E., and the Secretary of Finance) from enforcing RA 3137 and to have the Act declared unconstitutional, or in the alternative to void specific acts (the Secretary’s administering oaths, and the Chairman’s requirement of P200). The trial court, on March 31, 1962, declared Section 2 of RA 3137 unconstitutional, held the Board illegally constituted, voided its acts, and permanently enjoined enforcement; the P.A.E.A.E.’s counterclaim was dismissed. From that judgment both parties appealed to the Supreme Court.
Bef...(Subscriber-Only)
Issues:
- Does Section 2 of Republic Act No. 3137 unconstitutionally infringe the President’s appointment power by specifying who shall serve on the Board?
- Does the statutory requirement that the private-sector representative “come from the Association of Embroidery and Apparel Exporters of the Philippines” constitute prohibited class legislation or a denial of equal protection?
- Does Sec. 4, XVI (paragraph 2) of RA 3137 — authorizing the Board to levy a special assessment not exceeding one percent of certain values — amount to an undue delegation of legislative power?
- Does the alleged lack of appropriation to pay boa...(Subscriber-Only)
Ruling:
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Ratio:
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Doctrine:
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